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useful life is six year and its salvage value is $24,000. Before-tax cash flow (BTCF) will be $18,000 per year over the six-year life of
useful life is six year and its salvage value is $24,000. Before-tax cash flow (BTCF) will be $18,000 per year over the six-year life of the vehicle. Suppose before tax MARR is 20% and tax rate is 40%. a) Use straight-line depreciation to determine after tax cash flow of the investment for each year. b) What is the after-tax ROR? c) Is this vehicle a sound investment? Explain your answer. useful life is six year and its salvage value is $24,000. Before-tax cash flow (BTCF) will be $18,000 per year over the six-year life of the vehicle. Suppose before tax MARR is 20% and tax rate is 40%. a) Use straight-line depreciation to determine after tax cash flow of the investment for each year. b) What is the after-tax ROR? c) Is this vehicle a sound investment? Explain your
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